CBob
Returning Member

How to correctly input Form 1042-S dividend income and federal tax withheld into turbotax?

Hello, I am a non-resident alien with a stock portfolio in a US investment bank. The investment bank posted my tax docs in the form of a 1042-S form (not a 1099-DIV). There are 3 sections, all relate to dividends (income code 06). See details below, note x, y, y*, z and z* denote dollar amounts:

 

* The first page reports gross income x with exemption code 02 in box 3a. Tax rate is 0% in box 3b. Federal tax withheld is 0 in box 7a.

* The second page reports gross income y with exemption code 00 in box 3a. Tax rate is 15% in box 3b. Federal tax withheld is y* in box 7a.

* The third page reports gross income z with exemption code 00 in box 3a. Tax rate is 30% in box 3b. Federal tax withheld is z* in box 7a.

 

Looking at other articles it seems turbotax does not directly support form 1042-S. So I inputted:

1. the sum of the 3 incomes (x+y+z) in Wages & Income/Miscellaneous Income/Other reportable income/Enter description "Form 1042S" and amount as "x+y+z".

2. the sum of the federal taxes withheld (y*+z*) in Deductions & Credits/Other Income Taxes Paid in 2020/Withholding not already entered on a W-2 or 1099.

 

Turbotax is calculating that I get a federal refund of y*+z* (the tax withheld) which isn't right. I'm also unclear how I was supposed to input the 3 dividend incomes at different tax rates (0%, 15% and 30%).

 

Appreciate your guidance on this. Thanks in advance.